Apple’s plan to keep iPhone 7 margins high may have just imploded

[Guest Yoni Heisler]

http://androidforum.us/data/MetaMirrorCache/4f7516f02b51c7a58eb2c0b5b9cdd488.jpgApple's efforts to secure lower component pricing from iPhone suppliers has been met with strong resistance, according to a new report from Digitimes. The report claims that Apple in recent weeks sought to convince component manufacturers to reduce their quotes for iPhone parts by 20%. Apple has historically been able to wield quite a bit of power when it comes to securing favorable contract terms, but with iPhone sales currently on the decline, Apple has clearly lost a bit of its negotiating power. Generally, Apple is able to get some of the best deals on components because suppliers can make up the difference on volume and Apple is famously willing to pay up-front for parts. But with orders for iPhone components set to decline 30% year over year, it's easy to see why some suppliers were quick to balk at Apple's demands.

 

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